Joe Frazer and Graham-Paige

AUTOS

Last week Joseph Washington Frazer reached the motor magnates' Valhalla. He had been elected board chairman of Graham-Paige Motors Corp.; now Joe Frazer could make and sell his own automobiles. In a happy hubbub, almost like old times, he watched telegrams coming in from dealers all over the country, asking for postwar franchises.

But at week's end, on his way to Newport, the usually genial Joe Frazer was not especially happy. He did not mind being the only dollar-a-year executive in the motor industry; his week-old position gives him other compensation of the incentive type.

Frazer's unhappiness came from a swirl of rumors that spread from Detroit: he was putting Graham-Paige and other companies together in a new combine to balk Ford; the Fisher brothers were in; the Fisher brothers were out; Atlas Corp. was buying Graham-Paige heavily in the open market.

These rumors and their variations spurred boardroom sitters to action in brokerage offices throughout the U.S. Their buying huffed low-priced motor shares into new high ground, made them the most active on the Exchange. The rumors blew Graham-Paige before the steely eyes of the SEC, which already, like thousands of small speculators, was asking, "What goes on?"

To stop the rumors and quiet SEC, Graham-Paige hurried out with a statement full of intimate business details. Against the background of rumors, the statement made Joe Frazer, a 210-pounder, feel like a man undressing in public:

P: Frazer and associates, said the statement, had bought 265,000 shares of Graham-Paige Motors Corp. from Founder Joseph B. Graham at $2 per share. The same purchasers have an option to buy on or before Sept. 7 an additional 265,000 shares at the same price, also from Founder Graham.

P: The corporation gave Frazer an option--good for five years--under which he may buy up to 300,000 shares of Graham-Paige stock from the company's treasury at $3.50 per share.

Frazer's "associates" include David Baird, vice president of Marsh & McLennan, insurance brokers, and Floyd Odium, Boyd Hatch and Oswald L. Johnston, all of Atlas Corp. But Atlas itself is putting no money into Graham-Paige stock. Atlas Corp.'s June 30 statement showed a heavy cash position. The purchases were made by Atlas officers and directors as "personal investments."

The Graham-Paige statement, together with the information given out by Atlas Corp. officers, stilled the storm. Volume in the low-priced motor shares fell off and prices receded. By week's end, interest had shifted to old favorites.

Because of his option, Frazer has an incentive to build greater future value into Graham-Paige. But he also has a more personal urge to succeed. Only last September, Frazer left Willys-Overland after falling out with Ward Canaday, Willys' board chairman. Into the vacated post went Charles Sorensen from Ford, at $52,000 a year (TIME, June 19).

Proud of his operating skill, energetic, 52-year-old Joe Frazer did not take that lying down. At the suggestion of the Navy, he organized a company to take over Warren City Tank & Boiler Co. Last February he changed its name to Warren City Manufacturing Co., became its president, soon doubled its output of landing barges and other war goods.

Helping him at Warren were ten operating auto men he brought over from Willys. Last week they too became Graham-Paige employes, when the motor company with 150,000 shares of its stock made Warren City Manufacturing Co. a completely owned subsidiary. Together, Warren and Graham-Paige are turning out war work at the rate of $60 million a year.

Because his plants are still 100% engaged on war orders, Frazer refuses to specify the size or cost of the car he is planning. Says he: "When we build a car, it will be an entirely new postwar model." Then, mindful of the rumors, Frazer added: "We'll probably call it Graham-Paige. That's a good name."

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